Rate Update June 10, 2010

Mortgage rates are unchanged this morning.

The Labor Department reported this morning that initial jobless claims decreased by more than expected last week.  The report is being interpreted as a positive sign for the jobs market which is the key to an economic recovery.  On that news stocks are trading higher which could pressure mortgage rates higher later today.

Also threatening to push mortgage rates higher is good news out of Europe.  The European Central Bank announced earlier today that they were raising their forecast for Euro Zone economic growth in the coming year.  This has helped ease concerns and draw money out of the “safe” bond market.

Lastly, the US Treasury is set to auction $13 billion in 30-year bonds today.  The first two legs of the $70 billion supply have sold well this week and we don’t necessarily think that will change today.

Current outlook: locking bias